The U.S. Government is sitting on 445 billion in unrealized gains

[OohPooPahDoo]

Clearly you don't know shit. They only Value it at 42, Because it is so much Gold, if they ever went to unload it, it would massively Drive the Price of Gold Down.

You people simply do not understand economics.

To $42.22 for selling off less than 5% of the total world supply? I fucking doubt it.

There can be six billion TVs in the world, but if only 1 million of them were for sale, their price would be very, very high.

If you then "flood" the market with another 300 million TVs (5 percent of the total world supply), the price would drop radically.

.

By a factor of 40 X ? Really? Any real world examples of this happening?



And please, just nevermind the fact that the gold doesn't need to be sold all at once - or even at all.

 

[OohPooPahDoo]

The U.S. Government is sitting on 445 billion in unrealized gains.

The Federal Reserve current holds just over 8,000 metric tonnes of gold on its balance sheet. However, for accounting purposes, it only values the gold at $42.22 per troy oz! The actual market value of gold is at $1748 right now!

The balance sheet value of the gold is 11 billion. But its market value is 456 billion. So the fed has 445 in unrealized gains. All the Fed has to do is re-value its gold to market value and/or sell it off. The profits then get remitted to the treasury along with the rest of the fed profits. BOOM! Nearly half a trillion dollars, instantly!

Our money is not backed by gold anymore and hasn't been for a long time. Plus a lot of the gold we have belongs to other countries. We practically stole it from them after WWII when we promised to link our dollar to gold and have that as standard trading currency across the board. When we stopped backing our dollar with Gold, France wanted to come in and take their gold back, Nixon nixed that idea. The truth is, we've stolen Europe's gold and won't give it back, do you really think the fed wants to link our worthless dollars to their stolen gains?

Sooner or later, people are going to realize the dollar is worthless and heaven help us then. Our country when it took the dollar off the gold standard, decided to link it to oil. That's why the war against Iraq, they started selling their oil in Euros.

[ame=http://www.youtube.com/watch?v=VWvMGKoT_TY]World War III: The Unthinkable Cost of Preserving the Petrodollar, Spetember 14, 2012 - YouTube[/ame]

The Federal Reserve has 8133 metric tones of gold on its balance sheet that count against its liabilities (including the notes it issues).

Call it what you will, that's a fact.

 

[OohPooPahDoo]

Yeah, the left wing's answer to everything. Sell off America's treasure (to China?) to make the current administration look good.

Do you think a private business or a private individual would sit on a massive pile of gold when they are racking up huge debts?

The Federal Reserve IS a private business, and the gold that they hold does NOT belong to the US taxpayer or the US Treasury.

The federal reserve by law must remit 100% of its net profits to the U.S. Treasury every year and its board of governors are appointed by the President. I'm not really sure how you can call it a "private business" considering those two facts.

 

[healthmyths]

The U.S. Government is sitting on 445 billion in unrealized gains.

The Federal Reserve current holds just over 8,000 metric tonnes of gold on its balance sheet. However, for accounting purposes, it only values the gold at $42.22 per troy oz! The actual market value of gold is at $1748 right now!

The balance sheet value of the gold is 11 billion. But its market value is 456 billion. So the fed has 445 in unrealized gains. All the Fed has to do is re-value its gold to market value and/or sell it off. The profits then get remitted to the treasury along with the rest of the fed profits. BOOM! Nearly half a trillion dollars, instantly!

Clearly you don't know shit. They only Value it at 42, Because it is so much Gold, if they ever went to unload it, it would massively Drive the Price of Gold Down.

You people simply do not understand economics.

To $42.22 for selling off less than 5% of the total world supply? I fucking doubt it.

First are you sure there is 8,000 tons really there?
Ron Paul doesn't think so!!

Ron Paul wants gold at Fort Knox audited - Jun. 24, 2011

Releasing even a quarter of U.S. gold reserves would do definite psychological damage to the market right away," Nadler said. "That's not a quantity that markets could handily absorb ... I don't think they'd find a buyer."
Treasury: No fire sale of gold to delay debt ceiling - May. 11, 2011

 

[OohPooPahDoo]

445 billion on a one time shot that will not sell off at current market value per troy ounce is not worth even discussing. the federal reserves balance sheet also shows it holds a few trillion in monetize debt treasury issuance.

It's like selling the stove and refrigerator in order to pay the interest on the credit cards once.
It's a fucking retarded idea.

Yep, so we would tank the Price of Gold, and expend all our Gold in order to pay 1 years worth of Interest on the Debt.

This is truly how Liberals think.

There's no need to do that at all you fucking idiot, all they have to do is acknowlege the increased worth on their balance sheet. When you sit down to calculate YOUR net worth, do you count your gold holdings at $42.22 an oz?

 

[g5000]

To $42.22 for selling off less than 5% of the total world supply? I fucking doubt it.

There can be six billion TVs in the world, but if only 1 million of them were for sale, their price would be very, very high.

If you then "flood" the market with another 300 million TVs (5 percent of the total world supply), the price would drop radically.

.

By a factor of 40 X ? Really? Any real world examples of this happening?



And please, just nevermind the fact that the gold doesn't need to be sold all at once - or even at all.

Yes, there are real world examples. Look at what happened to the price of oil the last time the President said he was going to release some of our oil reserves onto the market. Just saying he was going to do it caused the price of oil to plummet. And that was almost literally just a drop in the bucket of world oil supply.

.

 

[CrusaderFrank]

The U.S. Government is sitting on 445 billion in unrealized gains.

The Federal Reserve current holds just over 8,000 metric tonnes of gold on its balance sheet. However, for accounting purposes, it only values the gold at $42.22 per troy oz! The actual market value of gold is at $1748 right now!

The balance sheet value of the gold is 11 billion. But its market value is 456 billion. So the fed has 445 in unrealized gains. All the Fed has to do is re-value its gold to market value and/or sell it off. The profits then get remitted to the treasury along with the rest of the fed profits. BOOM! Nearly half a trillion dollars, instantly!

Sheeeeet! Obama can spent that in 5 months!!

 

[OohPooPahDoo]

Clearly you don't know shit. They only Value it at 42, Because it is so much Gold, if they ever went to unload it, it would massively Drive the Price of Gold Down.

You people simply do not understand economics.

To $42.22 for selling off less than 5% of the total world supply? I fucking doubt it.

First are you sure there is 8,000 tons really there?
Ron Paul doesn't think so!!

Ron Paul wants gold at Fort Knox audited - Jun. 24, 2011

Releasing even a quarter of U.S. gold reserves would do definite psychological damage to the market right away," Nadler said. "That's not a quantity that markets could handily absorb ... I don't think they'd find a buyer."
Treasury: No fire sale of gold to delay debt ceiling - May. 11, 2011

Ron Paul is a flipping idiot so I fail to see the relevance.


Hey did you see where I pointed out the gold doesn't need to be sold for its value to be realized or, like everyone else on this thread, are you just gonna go with "re-value its gold to market value and/or sell it off" as being equal to "sell it all right away as fast as possible for any price offered" ?

 

[OohPooPahDoo]

There can be six billion TVs in the world, but if only 1 million of them were for sale, their price would be very, very high.

If you then "flood" the market with another 300 million TVs (5 percent of the total world supply), the price would drop radically.

.

By a factor of 40 X ? Really? Any real world examples of this happening?



And please, just nevermind the fact that the gold doesn't need to be sold all at once - or even at all.

Yes, there are real world examples. Look at what happened to the price of oil the last time the President said he was going to release some of our oil reserves onto the market. Just saying he was going to do it caused the price of oil to plummet. And that was almost literally just a drop in the bucket of world oil supply.

.

The price of oil fell by a factor of 40 fold? Really? I don't seem to remember that. Maybe you're mistaken.


Let's say the fed did decide to sell it all right away (and let's stick with your straw man and ignore they don't need to do that to realize the profit, as I have pointed out numerous times in this thread) - you wouldn't pay $100 an oz for gold? Or even $42.50?

 

[Avorysuds]

lol...

 

[GuyPinestra]

Do you think a private business or a private individual would sit on a massive pile of gold when they are racking up huge debts?

The Federal Reserve IS a private business, and the gold that they hold does NOT belong to the US taxpayer or the US Treasury.

The federal reserve by law must remit 100% of its net profits to the U.S. Treasury every year and its board of governors are appointed by the President. I'm not really sure how you can call it a "private business" considering those two facts.

Actually, it's 94%, but who knows how much it REALLY is when you can't audit their fucking books?

 

[OohPooPahDoo]

The Federal Reserve IS a private business, and the gold that they hold does NOT belong to the US taxpayer or the US Treasury.

The federal reserve by law must remit 100% of its net profits to the U.S. Treasury every year and its board of governors are appointed by the President. I'm not really sure how you can call it a "private business" considering those two facts.

Actually, it's 94%, but who knows how much it REALLY is when you can't audit their fucking books?

Its 100% of the NET PROFIT. You probably mean 94% of interest paid by the treasury on the fed's bond portfolio. The Fed does have expenses. They have to keep the lights on.


You should watch out for the mind control guys.

 

[GuyPinestra]

The federal reserve by law must remit 100% of its net profits to the U.S. Treasury every year and its board of governors are appointed by the President. I'm not really sure how you can call it a "private business" considering those two facts.

Actually, it's 94%, but who knows how much it REALLY is when you can't audit their fucking books?

Its 100% of the NET PROFIT. You probably mean 94% of interest paid by the treasury on the fed's bond portfolio. The Fed does have expenses. They have to keep the lights on.


You should watch out for the mind control guys.

I hate Wiki, but it's easy...

The U.S. Government receives all of the system's annual profits, after a statutory dividend of 6% on member banks' capital investment is paid, and an account surplus is maintained. In 2010, the Federal Reserve made a profit of $82 billion and transferred $79 billion to the U.S. Treasury.[21] This was followed at the end of 2011 with a transfer of $77 billion in profits to the U.S. Treasury Department.[22]

 

[Conservative]

The U.S. Government is sitting on 445 billion in unrealized gains.

The Federal Reserve current holds just over 8,000 metric tonnes of gold on its balance sheet. However, for accounting purposes, it only values the gold at $42.22 per troy oz! The actual market value of gold is at $1748 right now!

The balance sheet value of the gold is 11 billion. But its market value is 456 billion. So the fed has 445 in unrealized gains. All the Fed has to do is re-value its gold to market value and/or sell it off. The profits then get remitted to the treasury along with the rest of the fed profits. BOOM! Nearly half a trillion dollars, instantly!

You are quite possibly the most unintelligent poster on this board.

What is the true value of the United States' gold?

For starters, marking the Treasury's gold to market would create a huge headache of an ever-fluctuating balance sheet as the price of gold rises and falls, pointed out Dimitri Papadimitriou, president of the Levy Economics Institute at Bard College. Plus, if gold tumbled, we'd lose our hypothetical wealth as quickly as we'd accrued it.

For revaluation to have any economic impact, we'd have to sell, according to Mark Calabria, director of financial regulation studies at the Cato Institute.

And if the United States were to dump its gold on the open market, there's no way we'd get today's spot rate. Governments around the world collectively hold about 20 percent of the world's gold reserves. Among these, the United States holds about one-third of that.

Pouring it into the market would make prices crash. Even if the Treasury were to sell off gold a bit at a time, anticipation of future sales would exert a downward pressure on prices. Any transaction would also require deft political maneuvering and delicate negotiations, because other central banks plus the industry-backed World Gold Council wouldn't be too keen on us holding a red-tag sale on our gold.
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Raising the value of the Treasury's gold stockpile would have an inflationary effect, too, which is the last thing the Federal Reserve wants right now.

dumb ass.

 

[g5000]

By a factor of 40 X ? Really? Any real world examples of this happening?



And please, just nevermind the fact that the gold doesn't need to be sold all at once - or even at all.

Yes, there are real world examples. Look at what happened to the price of oil the last time the President said he was going to release some of our oil reserves onto the market. Just saying he was going to do it caused the price of oil to plummet. And that was almost literally just a drop in the bucket of world oil supply.

.

The price of oil fell by a factor of 40 fold? Really? I don't seem to remember that. Maybe you're mistaken.

The amount of oil that was to be released onto the market did not add up to anywhere near five percent of total world supply. So it would not have a factor of 40 effect.

If you did release five percent of the world's supply onto the market, I bet oil would drop by a factor of 40. Hell yes.

Let's say the fed did decide to sell it all right away (and let's stick with your straw man and ignore they don't need to do that to realize the profit, as I have pointed out numerous times in this thread) - you wouldn't pay $100 an oz for gold? Or even $42.50?

First, I don't think you know what a strawman is.

Second, if the amount of gold that was available to buy suddenly skyrocketed by 8000 metric tons, then no, I would not pay $100 for an ounce of gold, and neither would anyone else.

.

 

[Conservative]

Actually, it's 94%, but who knows how much it REALLY is when you can't audit their fucking books?

Its 100% of the NET PROFIT. You probably mean 94% of interest paid by the treasury on the fed's bond portfolio. The Fed does have expenses. They have to keep the lights on.


You should watch out for the mind control guys.

I hate Wiki, but it's easy...

The U.S. Government receives all of the system's annual profits, after a statutory dividend of 6% on member banks' capital investment is paid, and an account surplus is maintained. In 2010, the Federal Reserve made a profit of $82 billion and transferred $79 billion to the U.S. Treasury.[21] This was followed at the end of 2011 with a transfer of $77 billion in profits to the U.S. Treasury Department.[22]

OohOohPoohPooh is the dumbest member of this board. Bar none, and that is saying something.

 

[g5000]

8,000 tonnes, right OohPooPahDoo?

Okay.

Now check this out:

In 2011, gold sales to China shot up 20% on the previous year to 769.8 tonnes, the WGC said in its Gold Demand Trends report. The fastest growth was in sales of gold bars and coins for investment: total investment purchases rose 69% in 2011 to 258.9 tonnes, worth 84.5bn RMB.

China to overtake India as world's biggest gold market | World news | The Guardian

Get it now?

8,000 tonnes is ten times the amount of gold bought by the biggest buyer on the planet last year, and that buyer was on a spending binge.

It would take nearly ten years to sell that amount of gold. So how is that helpful to bringing down our debt today?

Is any of this starting to sink in?



.

 

[OohPooPahDoo]

Actually, it's 94%, but who knows how much it REALLY is when you can't audit their fucking books?

Its 100% of the NET PROFIT. You probably mean 94% of interest paid by the treasury on the fed's bond portfolio. The Fed does have expenses. They have to keep the lights on.


You should watch out for the mind control guys.

I hate Wiki, but it's easy...

The U.S. Government receives all of the system's annual profits, after a statutory dividend of 6% on member banks' capital investment is paid, and an account surplus is maintained. In 2010, the Federal Reserve made a profit of $82 billion and transferred $79 billion to the U.S. Treasury.[21] This was followed at the end of 2011 with a transfer of $77 billion in profits to the U.S. Treasury Department.[22]

The dividends paid are an expense of the fed. Federal reserve stock is not like common stock in a private corporation.

 

[OohPooPahDoo]

The U.S. Government is sitting on 445 billion in unrealized gains.

The Federal Reserve current holds just over 8,000 metric tonnes of gold on its balance sheet. However, for accounting purposes, it only values the gold at $42.22 per troy oz! The actual market value of gold is at $1748 right now!

The balance sheet value of the gold is 11 billion. But its market value is 456 billion. So the fed has 445 in unrealized gains. All the Fed has to do is re-value its gold to market value and/or sell it off. The profits then get remitted to the treasury along with the rest of the fed profits. BOOM! Nearly half a trillion dollars, instantly!

You are quite possibly the most unintelligent poster on this board.

What is the true value of the United States' gold?

For starters, marking the Treasury's gold to market would create a huge headache of an ever-fluctuating balance sheet as the price of gold rises and falls, pointed out Dimitri Papadimitriou, president of the Levy Economics Institute at Bard College. Plus, if gold tumbled, we'd lose our hypothetical wealth as quickly as we'd accrued it.

For revaluation to have any economic impact, we'd have to sell, according to Mark Calabria, director of financial regulation studies at the Cato Institute.

And if the United States were to dump its gold on the open market, there's no way we'd get today's spot rate. Governments around the world collectively hold about 20 percent of the world's gold reserves. Among these, the United States holds about one-third of that.

Pouring it into the market would make prices crash. Even if the Treasury were to sell off gold a bit at a time, anticipation of future sales would exert a downward pressure on prices. Any transaction would also require deft political maneuvering and delicate negotiations, because other central banks plus the industry-backed World Gold Council wouldn't be too keen on us holding a red-tag sale on our gold.
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Raising the value of the Treasury's gold stockpile would have an inflationary effect, too, which is the last thing the Federal Reserve wants right now.

dumb ass.

So why not mark the fed's gold balance down to a nickel and three quarters?


Fuck you idiots, don't you realize what's going on? The Federal Reserve is sitting on a massive pile of profit that isn't showing up on its balance sheet and it doesn't have to remit this to the PEOPLE because of its accounting choices. And for the umfuckedtwatteen time - it doesn't need to sell all the gold off at once or even at all! If you were to mark-to-market the fed's balance sheet, the gold could sit there, the value of the balance sheet would shoot up, and the fed would have to issue money - essentially backed by the market value of this gold - to the Congress. Or hey - split the difference, mark it up to $800 an oz. You don't think its a little ridiculous that the the actual value of this gold - if sold over a long period of time - is far more than 42.22 an oz?

 

[OohPooPahDoo]

8,000 tonnes, right OohPooPahDoo?

Okay.

Now check this out:

In 2011, gold sales to China shot up 20% on the previous year to 769.8 tonnes, the WGC said in its Gold Demand Trends report. The fastest growth was in sales of gold bars and coins for investment: total investment purchases rose 69% in 2011 to 258.9 tonnes, worth 84.5bn RMB.

China to overtake India as world's biggest gold market | World news | The Guardian

Get it now?

8,000 tonnes is ten times the amount of gold bought by the biggest buyer on the planet last year, and that buyer was on a spending binge.

It would take nearly ten years to sell that amount of gold. So how is that helpful to bringing down our debt today?

Is any of this starting to sink in?



.

For the LAST FUCKING TIME YOU RETARDS - the GOLD DOES NOT NEED TO BE SOLD FOR IT TO BE MARKED HIGHER ON THE FED'S fucking BALANCE SHEET.